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A credit score is a three-digit number, calculated by scoring companies from your credit report, that lenders may use to estimate how likely you are to repay borrowed money.
What is a credit score?
A credit score summarizes the information in your credit report into a single number. Many commonly used scores range from 300 to 850, and higher scores are generally viewed more favorably by lenders.
You don't have just one score. Different scoring companies, versions and credit bureaus can each produce a different number for the same person.
What affects your credit score
Scoring models look at several categories of information. The exact weighting varies by model and by person, but these are the main factors most models consider:
Credit reports vs. credit scores
Your credit report is the detailed record: your accounts, balances, payment history, public records and inquiries. Your credit score is a number calculated from that record.
You can request free credit reports from the three nationwide credit bureaus at AnnualCreditReport.com. Reviewing them helps you understand what is being reported about you.
Why your scores can differ
- Lenders don't always report to all three bureaus, so your reports may not match.
- Different scoring models and versions weigh information differently.
- Scores change as new information is reported, so the date you check matters.
Common myths
"Checking my own credit hurts my score."
Checking your own credit is a soft inquiry and does not affect your score.
"A company can remove accurate negative information."
Accurate information can generally remain on your report for the period allowed by law. You can dispute information you believe is inaccurate directly with the credit bureau.
Worked example: credit utilization
Balance $300 ÷ limit $1,000 = 30% utilization
If a card has a $1,000 limit and a reported balance of $300, you are using 30% of that card's available credit. Paying the balance down before the statement date would lower the reported ratio.
Try the CalculatorFrequently asked questions
How often does my credit score change?
Your score can change whenever new information is reported to the credit bureaus, which for many accounts happens about once a month.
Can I build credit after bankruptcy?
Many people establish new positive payment history after bankruptcy. Results vary by individual, and no particular outcome or timeframe is guaranteed.
Is it free to see my credit report?
Yes. You can request free credit reports from AnnualCreditReport.com, the official source.
Sources
- AnnualCreditReport.com: official source for free credit reports
- Consumer Financial Protection Bureau: credit reports, scores and consumer rights
- Federal Trade Commission: free credit reports and disputing errors
This article is general educational information, not individualized legal, tax or financial advice.
